Have you considered a planned gift to benefit Alzhiemer's Family Services?
Many people have the investment goal of being able to insure a guaranteed stream of income and do so by investing in fixed annuities from an insurance company or purchasing Certificates of Deposits (CDs). But if you are also charitably inclined, an even better alternative might be to consider a charitable-gift annuity from a not-for-profit organization like Alzheimer’s Family Services.
A charitable gift annuity is a way to make a gift to your favorite charity, and still receive a lifetime income for yourself. It is truly a gift that keeps on giving. Simply put it’s a contract under which a charity, in return for a transfer of cash, stock or other property agrees to pay a fixed sum of money for a period measured by one or two lives.
The person who contributes an asset for the annuity is called the "donor," and the person who receives payments is called the "annuitant" or "beneficiary." In addition to providing lifetime income, a gift annuity has the added benefits of offering some significant immediate and long-term tax benefits awhile allowing you to support your favorite charity at the same time.
Could you be a good candidate for a charitable gift annuity?
Most gift annuity donors are retired, want to increase their cash flow, seek the security of guaranteed payments, and would like to save on their taxes. A charitable gift annuity might also be worth considering if your interest rates on your CDs and other fixed-income investments have declined, and you would like to increase your cash flow.
You also might want to consider an annuity if you own appreciated stock or mutual fund shares and have considered selling some of the shares and reinvesting the proceeds to generate more income, but you have hesitated because you don't want to pay tax on the capital gain. Other reasons to consider a annuity include locking in fixed payments which are unaffected by interest rates and stock prices, insuring the continuation of payments to a surviving spouse without the delay of probate proceedings, or if you would like to provide financial assistance to an elderly parent, a sibling, or other person in a tax-advantaged manner.
To learn more about gifts and estate planning, view the Planned Giving website provided by our affiliate, Covenant Hospice or contact Nigel Allen, Vice President of Gift & Estate Planning at (850) 202-0299.
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